PENSION FUNDS ACT NO. 24 OF 1956 - Shepstone & Wylie

1 PENSION FUNDS ACT NO. 24 OF 1956 [View Regulation] [ASSENTED TO 28 APRIL, 1956] [DATE OF COMMENCEMENT: 1 JANUARY, 1958] (English text signed by the Governor-General) This Act has been updated to Government Gazette 37351 dated 18 February, 2014. as amended by Finance Act, No. 81 of 1957 [with effect from 9 July, 1957] Finance Act, No. 80 of 1959 [with effect from 6 July, 1959] Inspection of financial Institutions Act, No. 68 of 1962 [with effect from 20 June, 1962] Second Finance Act, No. 58 of 1966 [with effect from 28 October, 1966] financial Institutions Amendment Act, No. 65 of 1968 [with effect from 26 June, 1968 ] financial Institutions Amendment Act, No. 80 of 1969 [with effect from 25 June, 1969] financial Institutions Amendment Act, No.

2 23 of 1970 [with effect from 9 March, 1970] financial Institutions Amendment Act, No. 91 of 1972 [with effect from 28 June, 1972] financial Institutions Amendment Act, No. 101 of 1976 [with effect from 1 August, 1976] financial Institutions Amendment Act, No. 94 of 1977 [with effect from 1 July, 1977] financial Institutions Amendment Act, No. 80 of 1978 [with effect from 21 June, 1978] financial Institutions Amendment Act, No. 103 of 1979 [with effect from 13 July, 1979] financial Institutions Amendment Act, No. 99 of 1980 [with effect from 1 August, 1980] financial Institutions Amendment Act, No. 82 of 1982 [with effect from 9 June, 1982] Corporation for Public Deposits Act, No. 46 of 1984 [with effect from 31 March, 1984] financial Institutions Amendment Act, No.

3 86 of 1984 [with effect from 18 July, 1984, unless otherwise indicated] financial Institutions Amendment Act, No. 50 of 1986 [with effect from 28 May, 1986] financial Institutions Amendment Act, No. 51 of 1988 [with effect from 20 May, 1988] Legal Succession to the South African Transport Services Act, No. 9 of 1989 [with effect from 6 October, 1989] financial Institutions Amendment Act, No. 53 of 1989 [with effect from 1 October, 1989] financial Institutions Second Amendment Act, No. 54 of 1989 [with effect from 30 June, 1989] financial Institutions Amendment Act, No. 64 of 1990 [with effect from 1 September, 1990] financial Services Board Act, No. 97 of 1990 [with effect from 1 April, 1991] financial Institutions Amendment Act, No.

4 54 of 1991 [with effect from 30 May, 1991] financial Institutions Second Amendment Act, No. 119 of 1991 financial Services Board Amendment Act, No. 41 of 1992 [with effect from 1 May, 1992] financial Institutions Amendment Act, No. 83 of 1992 financial Institutions Amendment Act, No. 7 of 1993 [with effect from 1 June, 1993] financial Institutions Second Amendment Act, No. 104 of 1993 [with effect from 1 July, 1993] Labour Relations Act, No. 66 of 1995 [with effect from 11 November, 1996] PENSION FUNDS Amendment Act, No. 22 of 1996 Abolition of Restrictions on the Jurisdiction of Courts Act, No. 88 of 1996 [with effect from 22 November, 1996] Judicial Matters Amendment Act, No. 104 of 1996 [with effect from 14 February, 1997] PENSION FUNDS Amendment Act, No.

5 94 of 1997 Long-Term Insurance Act, No. 52 of 1998 [with effect from 1 January, 1999] Maintenance Act, No. 99 of 1998 [with effect from 26 November, 1999] PENSION FUNDS Second Amendment Act, No. 39 of 2001 PENSION FUNDS Amendment Act, No. 65 of 2001 PENSION FUNDS Amendment Act, No. 11 of 2007 Revenue Laws Amendment Act, No. 35 of 2007 [with effect from 8 January, 2008, unless otherwise indicated] financial Services Laws General Amendment Act, No. 22 of 2008 [with effect from 1 November, 2008, unless otherwise indicated] Revenue Laws Amendment Act, No. 60 of 2008 [with effect from 8 January, 2009, unless otherwise indicated] financial Services Laws General Amendment Act, No. 45 of 2013 [with effect from 28 February, 2014, unless otherwise indicated] GENERAL NOTE In terms of section 17 of the financial Services Laws General Amendment Act, No.

6 22 of 2008, the phrase "by regulation", wherever it occurs in sections 4 (2), 4 (4), 12 (2), 13A (2) (a), 13A (6) (a), 13A (7), 13B (3), 15 (1), 16 (1), 16 (7), 19 (5) (b) (iii), 22 (1), 28 (4) (a) and 28 (12), is deleted. ACT To provide for the registration, incorporation, regulation and dissolution of PENSION FUNDS and for matters incidental thereto. ARRANGEMENT OF SECTIONS CHAPTER I ADMINISTRATION AND APPLICATION OF ACT AND INTERPRETATION OF TERMS 1. Definitions 2. Application of Act 3. Registrar and Deputy Registrar of PENSION FUNDS 3A.. 3B.. 4. 4A. 4B. 4C. 5. 6. 7. 7A. 7B. 7C. 7D. 7E. 7F. 8. 9. 9A. 9B. 10. 11. CHAPTER II REGISTRATION AND INCORPORATION Registration of PENSION FUNDS Registration of PENSION FUNDS to which State contributes financially Effect of registration of PENSION fund referred to in section 4A Transfer to PENSION fund referred to in section 4A of its assets held by another Effect of registration of PENSION fund Allocation of assets and liabilities between PENSION fund organization and other associated business CHAPTER III MANNER OF ADMINISTRATION AND POWERS OF REGISTERED FUNDS Registered office Board of fund Exemptions Object of board Duties of board Application of certain sections Liability of board member Principal officer and deputy principal officer Appointment of auditor Appointment of a valuator Protection of

7 Disclosures Business which may be carried on Rules 12. 13. 13A. 13B. 14. 14A. 14B. 15. 15A. 15B. 15C. 15D. 15E. 15F. 15G. 15H. 15I. 15J. 15K. 16. 17. 18. 18A. 19. 20. 21. 22. 23. Amendment of rules Binding force of rules Payment of contributions and certain benefits to PENSION FUNDS Restrictions on administration of PENSION FUNDS Amalgamations and transfers Minimum benefits Determination of member's individual account, minimum individual reserve and minimum PENSION increase CHAPTER IV DOCUMENTS TO BE DEPOSITED WITH REGISTRAR Accounts Rights to use of actuarial surplus Apportionment of existing surplus Apportionment of future surplus Utilisation of surplus for benefit of members Utilisation of surplus for benefit of employer Existing employer reserve accounts Right to share in surplus accounts on exit Use of contents of any surplus accounts to fund deficits Application of surplus accounts on liquidation of fund Use of employer surplus to prevent job losses Specialist tribunal Investigations by a valuator.

8 fund not in a sound financial condition Business rescue Investments Requirements in regard to documents to be deposited with registrar Registrar may require additional particulars in case of certain applications and returns Inspection of documents Effect of registrar's certificate on documents CHAPTER V ENQUIRIES BY REGISTRAR, APPLICATIONS TO COURT, CANCELLATION OR SUSPENSION OF REGISTRATION AND DISSOLUTION OF FUNDS 24. Enquiries 25. Inspections and on-site visits 26. Registrar may intervene in management of fund 27. Cancellation or suspension of registration 28. Voluntary dissolution of fund 28A. Remuneration of liquidator 29. Winding-up by the court 29A. Winding-up of unregistered PENSION fund 30. Special provisions relating to liquidation of FUNDS CHAPTER VA CONSIDERATION AND ADJUDICATION OF COMPLAINTS 30A.

9 Submission and consideration of complaints 30B. Establishment of Office of PENSION FUNDS Adjudicator 30C. Appointment of Adjudicator 30D. Main object of Adjudicator 30E. Disposal of complaints 30F. Opportunity to comment 30G. Parties to complaint 30H. Jurisdiction and prescription 30I. Time limit for lodging of complaints 30J. Procedure for conducting investigation 30K. Legal representation 30L. Record of proceedings 30M. Statement by Adjudicator regarding determination 30N. Interest on amount awarded 30O. Enforceability of determination 30P. Access to court 30Q. Powers of Adjudicator 30R. FUNDS of Adjudicator 30S. 30T. 30U. 30V. 30W. 30X. 30Y. 31. 32. 32A. 33. 33A. 34. 35. 36. 37. 37A. 37B. 37C. 37D. 38. 39. 40. 40A. 40B. 40C. 41.

10 Remuneration and terms and conditions of employment of Adjudicator and employees Accountability Report of Adjudicator Offences and penalties .. Liquidation Adjudicator proceedings CHAPTER VI GENERAL AND MISCELLANEOUS Carrying on business of unregistered PENSION fund organization and use of designation " PENSION fund " Registrar may require unregistered FUNDS to furnish information Power of registrar in respect of communications Registrar may extend certain periods Directives Report by registrar Right to obtain copies of or to inspect certain documents Regulations Penalties PENSION benefits not reducible, transferable or executable Disposition of PENSION benefits upon insolvency Disposition of PENSION benefits upon death of member fund may make certain deductions from PENSION benefits Exemption from Act 57 of 1988.